Documents & Reports

Croatia - Macro monitoring report (English)

Abstract

After six years of recession, Croatia started a gradual recovery growing by 1.6 percent in 2015 on the back of external demand and private consumption. The labor market improved, although the unemployment rate at 16.3 percent remained high compared to... See More +After six years of recession, Croatia started a gradual recovery growing by 1.6 percent in 2015 on the back of external demand and private consumption. The labor market improved, although the unemployment rate at 16.3 percent remained high compared to peers. A surge in tourism receipts, transfers from the EU and income surplus as parent banks reduced profit withdrawal due to CHF-loans conversion losses pushed the current account surplus to a record high. The general government deficit is expected to have declined to 4 percent of GDP in 2015, with public debt to GDP reaching 87 percent. After parliamentary elections in early November and difficult negotiations to form a government, the new government got confirmed in January. Two months later, the Parliament adopted the 2016 budget that aims to reduce the deficit below 3 percent of GDP.
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